Changes to the Land Tax Act were brought before the Queensland Parliament by Treasurer Cameron Dick in the mid-year budget update last December and drafted into law on June 30.

Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella is calling for the new law to be repealed and has refused to rule out her organisation mounting a legal challenge to the legislation.

For the first time, a property owner’s total landholding in Australia will be considered when assessing their land tax liability in Queensland.

It means that landowners who own multiple properties across the country will be in line to pay a considerable increase in Queensland land tax based on the new calculations.

Commercial lawyers such as Morgan English in Sydney are already advising their clients of the changes, warning the new law will boost Queensland property owners into a higher land tax bracket should they have any interstate holdings.

This is because the Queensland Revenue Office will determine the total value of a Queensland taxpayers’ ‘Australian land’.

The total value of the property owner’s assets will be used to determine the land tax rates in a manner that considers interstate land as Queensland land.The tax will then be apportioned to Queensland land holdings.

The amendments will not apply to a principal place of residence, rural and primary production properties, supported accommodation, caravan parks and retirement villages.

Mercorella said there was only so much pressure that investors were prepared to accept.

“Investors are sick of being the ATM for the state government,” she said.

“It’s easy to look at this land tax regime and to assume that investors can afford it, but make no mistake this will have a very damaging impact on every single Queenslander.

“It will increase rents and it will have a significant impact on commercial entities who operate businesses in Queensland and it may well impact employment.”

The Opposition is calling on the State Government to release the modelling on which the new tax is based.

Shadow Treasurer David Janetzki said the Palaszczuk Government was driving up rent and driving away investment in the middle of a cost-of-living crisis.

“The cost of living is rising and the housing crisis is worsening. We need to know the real impact this tax is having on Queenslanders,” he said.

A spokesperson for the Treasurer said the legislation would affect less than 10,000 landowners and was expected to generate $20 million a year in additional revenue by closing a loophole that currently allows interstate investors from paying land tax in Queensland.

“This sensible, prudent reform means interstate investors get treated the same as Queensland investors, wherever they live and wherever they own property,” they said.

“Currently, interstate investors who own properties across several states can access the tax-free and progressive rate thresholds multiple times, depending how many states they own property in.”